ISG Study Says Need for Flexibility is Driving Demand for AI-Powered Payroll Platforms
Information Services Group (ISG) has released new research reports highlighting the transformation in payroll systems driven by AI adoption and changing workforce dynamics. The study reveals two key trends: the emergence of real-time payroll access and increased use of AI and machine learning for payroll management.
The reports emphasize that modern payroll platforms must integrate with HR and finance departments while ensuring compliance across multiple jurisdictions. AI-powered systems analyze local labor laws and apply them to payroll calculations, while cloud-based solutions offer enhanced scalability and security.
ISG evaluated 24 software providers across five platform categories: Payroll Management, Global Payroll, International Payroll, Multi-Country Payroll, and US Payroll. ADP, Oracle, and UKG emerged as the top three leaders across all categories.
Information Services Group (ISG) ha rilasciato nuovi rapporti di ricerca che evidenziano la trasformazione nei sistemi di pagamento guidata dall'adozione dell'IA e dai cambiamenti nelle dinamiche della forza lavoro. Lo studio rivela due tendenze chiave: l'emergere dell'accesso alla busta paga in tempo reale e l'aumento dell'uso di IA e apprendimento automatico per la gestione della busta paga.
I rapporti sottolineano che le moderne piattaforme di pagamento devono integrarsi con i dipartimenti HR e finanza, garantendo al contempo la conformità in diverse giurisdizioni. I sistemi alimentati dall'IA analizzano le leggi locali sul lavoro e le applicano ai calcoli delle buste paga, mentre le soluzioni basate su cloud offrono una maggiore scalabilità e sicurezza.
ISG ha valutato 24 fornitori di software in cinque categorie di piattaforma: Gestione delle Buste Paga, Busta Paga Globale, Busta Paga Internazionale, Busta Paga Multi-Paese e Busta Paga Statunitense. ADP, Oracle e UKG sono emersi come i primi tre leader in tutte le categorie.
Information Services Group (ISG) ha publicado nuevos informes de investigación que destacan la transformación en los sistemas de nómina impulsada por la adopción de IA y los cambios en la dinámica de la fuerza laboral. El estudio revela dos tendencias clave: el surgimiento del acceso a la nómina en tiempo real y el aumento del uso de IA y aprendizaje automático para la gestión de nóminas.
Los informes enfatizan que las modernas plataformas de nómina deben integrarse con los departamentos de RRHH y finanzas, asegurando al mismo tiempo el cumplimiento en múltiples jurisdicciones. Los sistemas impulsados por IA analizan las leyes laborales locales y las aplican a los cálculos de nómina, mientras que las soluciones basadas en la nube ofrecen una mayor escalabilidad y seguridad.
ISG evaluó a 24 proveedores de software en cinco categorías de plataforma: Gestión de Nómina, Nómina Global, Nómina Internacional, Nómina Multipaís y Nómina de EE.UU. ADP, Oracle y UKG surgieron como los tres principales líderes en todas las categorías.
정보 서비스 그룹 (ISG)가 AI 채택과 변화하는 노동력 역학에 의해 촉진된 급여 시스템의 변화를 강조하는 새로운 연구 보고서를 발표했습니다. 이 연구는 실시간 급여 접근의 출현과 급여 관리에 대한 AI와 머신 러닝의 사용 증가라는 두 가지 주요 트렌드를 밝혀냅니다.
보고서는 현대 급여 플랫폼이 HR 및 재무 부서와 통합되어야 하며 여러 관할권에서의 준수를 보장해야 한다고 강조합니다. AI 지원 시스템은 현지 노동법을 분석하고 이를 급여 계산에 적용하며, 클라우드 기반 솔루션은 향상된 확장성과 보안을 제공합니다.
ISG는 급여 관리, 글로벌 급여, 국제 급여, 다국적 급여, 미국 급여의 다섯 가지 플랫폼 범주에서 24개의 소프트웨어 공급업체를 평가했습니다. ADP, Oracle, UKG가 모든 카테고리에서 최고의 세 리더로 떠올랐습니다.
Information Services Group (ISG) a publié de nouveaux rapports de recherche soulignant la transformation des systèmes de paie induite par l'adoption de l'IA et l'évolution de la dynamique de la main-d'œuvre. L'étude révèle deux tendances clés : l'émergence de l'accès à la paie en temps réel et l'utilisation accrue de l'IA et de l'apprentissage automatique pour la gestion de la paie.
Les rapports soulignent que les plateformes de paie modernes doivent s'intégrer aux départements RH et finance tout en garantissant la conformité dans plusieurs juridictions. Les systèmes alimentés par l'IA analysent les lois du travail locales et les appliquent aux calculs de paie, tandis que les solutions basées sur le cloud offrent une évolutivité et une sécurité améliorées.
ISG a évalué 24 fournisseurs de logiciels dans cinq catégories de plateforme : Gestion de la Paie, Paie Globale, Paie Internationale, Paie Multinationale et Paie US. ADP, Oracle et UKG se sont distingués comme les trois leaders dans toutes les catégories.
Information Services Group (ISG) hat neue Forschungsberichte veröffentlicht, die die Transformation der Lohnsysteme durch die Einführung von KI und sich ändernde Arbeitsdynamiken hervorheben. Die Studie offenbart zwei zentrale Trends: das Aufkommen des Echtzeit-Zugangs zu Gehältern und die zunehmende Nutzung von KI und maschinellem Lernen für das Lohnmanagement.
Die Berichte betonen, dass moderne Gehaltsplattformen sich mit den HR- und Finanzabteilungen integrieren müssen, während sie die Einhaltung in mehreren Rechtsordnungen sicherstellen. KI-gesteuerte Systeme analysieren lokale Arbeitsgesetze und wenden diese auf die Lohnberechnungen an, während Cloud-basierte Lösungen verbesserte Skalierbarkeit und Sicherheit bieten.
ISG bewertete 24 Softwareanbieter in fünf Plattformkategorien: Lohnmanagement, globale Gehaltsabrechnung, internationale Lohnabrechnung, Lohnabrechnung in mehreren Ländern und US-Gehaltsabrechnung. ADP, Oracle und UKG traten als die Top-drei Führer in allen Kategorien hervor.
- AI integration enhances compliance and automation capabilities
- Cloud-based solutions offer improved scalability and security
- Real-time payroll access provides better employee experience
- Organizations face challenges adapting legacy systems to modern software
- Companies underutilize payroll systems for communication opportunities
Insights
The ISG research reveals a transformative shift in the payroll software market, highlighting substantial opportunities for ISG (III) as a leading advisory firm. The analysis identifies critical market demands that directly benefit ISG's consulting and advisory services: the integration of AI-powered solutions, real-time payroll capabilities and cross-border compliance management.
The positioning of ADP, Oracle and UKG as market leaders across all five categories indicates a concentrated market structure, creating a strategic opportunity for ISG to capitalize on its advisory services. With enterprises struggling to adapt legacy systems and maximize modern payroll platforms, ISG's expertise becomes increasingly valuable. The company's comprehensive market research and advisory services are well-positioned to capture this growing demand, potentially driving revenue growth through increased consulting engagements.
For investors, this market evolution presents a positive outlook for ISG's business model. The company's deep understanding of enterprise software needs and its established relationship with major technology providers strengthens its competitive position in the $20+ billion global payroll software market. The focus on AI integration and compliance management aligns with high-growth segments of the market, suggesting strong potential for sustained revenue expansion.
The technological landscape detailed in ISG's research showcases a significant pivot toward AI-driven payroll solutions with three key innovations: anomaly detection in payroll data, automated compliance verification and predictive payroll expense forecasting. This technological evolution represents a fundamental shift from traditional payroll processing to intelligent, predictive systems.
The emphasis on cloud-based systems with AI integration addresses critical enterprise pain points: multi-jurisdictional compliance, remote workforce management and real-time wage access. The technical architecture required for these capabilities demands sophisticated integration capabilities and robust security frameworks, creating substantial barriers to entry for new market entrants.
The identification of communication integration as an underutilized feature in payroll systems reveals an emerging technological opportunity. This insight suggests potential product development directions for payroll software providers and highlights ISG's capability to identify unexploited market opportunities, reinforcing their position as a valuable technology advisor.
Enterprises seek integrated, scalable, compliant payroll systems that can serve remote workers and provide on-demand wage access
The ISG Payroll Management Buyers Guides, produced by ISG Software Research (formerly Ventana Research), identify two trends that are setting new expectations for payroll systems: the rise of real-time payroll, which allows workers to access their earned wages rather than waiting for the pay period to end, and the increasing use of AI and machine learning to detect anomalies in payroll data, ensure compliance with local laws and forecast payroll expenses based on historical data.
“Demand for dynamic, real-time solutions that can handle the tax implications of employees working across state and national borders and the rise of real-time payroll is requiring enterprises to make rapid adjustments,” said Matthew Brown, director of Research, Human Capital Management, ISG Software Research. “Payroll systems must keep pace with regulatory changes and align with broader HR and organizational strategies to minimize risk, drive operational efficiency and enhance employee experience.”
Payroll teams now collaborate more closely with HR and finance departments, underscoring the need for modern payroll platforms that integrate with other departments’ software and provide a more holistic approach to workforce management, the reports say.
Enterprises are turning to AI- and cloud-based payroll systems to accomplish those goals. AI-powered systems analyze local labor laws, apply that analysis to payroll calculations and ensure compliance across multiple jurisdictions. Cloud-based payroll systems offer scalability, flexibility and enhanced security compared with traditional on-premises systems while enabling organizations to manage payroll operations from anywhere in the world.
While AI and automation offer new tools for compliance, many organizations are still grappling with the challenges of adapting legacy systems to contemporary software, the Buyers Guides say.
Enterprises may also be missing opportunities to capitalize on the use of payroll systems as tools that offer a unique touchpoint for communicating important updates, sharing benefits information or highlighting key company initiatives. The reports say integrating communication into payroll can help companies foster a stronger connection with the workforce.
For its 2024 Payroll Management Buyers Guides, ISG evaluated software providers across five platform categories – Payroll Management, Global Payroll, International Payroll, Multi-Country Payroll, and US Payroll – and produced a separate Buyers Guide for each. A total of 24 providers were assessed: ADP, BambooHR, Darwinbox, Dayforce, Deel, Gusto, Infor, isolved, Namely, Neeyamo, Netchex, Oracle, Oyster, Papaya Global, Paychex, Paycom, Paycor, Paylocity, Rippling, SAP, UKG, Unit4, Workday and Zellis.
ISG Software Research designates the top three software providers as Leaders in each category. For the 2024 study, the leading providers in ranked order are:
Payroll Management: ADP, Oracle and UKG
Global Payroll: ADP, Oracle and UKG
International Payroll: ADP, Oracle and UKG
Multi-Country Payroll: ADP, Oracle and UKG
US Payroll: ADP, Oracle and UKG
“The future of payroll is not just about processing payments,” said Mark Smith, partner of Software Research at ISG. “It’s about creating a more agile, compliant and worker-centered function that supports the long-term success of the organization. Now is the time for organizations to take the next step and make payroll a driving force for positive change.”
The ISG Payroll Management Buyers Guides are the distillation of more than a year of market and product research efforts. The research is not sponsored nor influenced by software providers and is conducted solely to help enterprises optimize their business and IT software investments.
Visit this webpage to learn more about the ISG Payroll Management Buyers Guides and read executive summaries of each of the five reports. The complete reports, including provider rankings across seven product and customer experience dimensions and detailed research findings on each provider, are available by contacting ISG Software Research.
About ISG Software Research
ISG Software Research, previously Ventana Research, provides authoritative market research and coverage of the business and IT software industry. It distributes research and insights daily through its user community, and provides a portfolio of consulting, advisory, research and education services for enterprises, software and service providers, and investment firms. Its on-demand service provides structured education and advisory support through subject-matter experts. ISG Buyers Guides support the RFI/RFP process and help enterprises evaluate and select software providers through tailored assessment services and the ISG Software Research Value Index methodology. Visit www.ventanaresearch.com for more information and to sign up for free community membership.
About ISG
ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in
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Press Contacts:
Will Thoretz, ISG
+1 203 517 3119
will.thoretz@isg-one.com
Julianna Sheridan, Matter Communications for ISG
+1 978 518 4520
isg@matternow.com
Source: Information Services Group, Inc.
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